Schemes of arrangement : Law and practice / Geoff O' Dea, Freshfields Bruckhaus Deringer LLP; Julian Long, Freshfields Bruckhaus Deringer LLP; Alexandra Smyth, Freshfields Bruckhaus Deringer LLP ; consulant editors William Trower QC, South Square; Andrew Thornton, Erskine Chambers.

Includes bibliographical references and index.

CONTE,NTS
Table of Cases
Table of Legislation
xi
xvii
1 .
I INTRODUCTION
Introduction and Outline of Process
LJses
Prcvalence
Process
Limitations
Jurisdiction and the Types of Companies that May Propose Schemes
Jurisdiction of rhe F.nglish (lourts
Rccognition of English Sche mes in E,urope
Recognition of Flnglish Schcmes by US Courts
Jurisdiction outside Europe and rhe US
II KE,Y PRINCIPLE,S RELATING TO
CREDITOR AND M E,MBER SCHEMES
Meaning of Key Legal Terms and Concepts
A'Oompromise' or'Alrangement'
Constitution of Classes oI Mcmbcrs or Creditors
Magnirudc of Dissimilariry of Rights beforc a
Separate Class Required
Record f)a tcs, (iu rrency (,onve rs io ns a ncl'l'ra nsfers
Itelevant Timc to Ascertain rhe Rights Applicable to the l)etermination
of the Class(es) of Members or Crcditors
lnclusion of All Members or (lreditors in a (llass in a Schcme
Court Hearings, Creditor or Member Meetings and
Disclosu re Requirements
The Court Hearings
'lhe Hearing to (lonvene Mecting(s)
Disclosure Requirements and the Flxplanatory Statement
Meeting(s) of Class(es) of Members or Creditors
Jhe Sanction Hcaring
Imposition of (.londition,s on, or Alterarion of, rhc Scheme bv the Court
Post-sanction I ssucs a nd Conditions Prc:cedctrt
)
1.05
L08
1.1
1.13
2.01
2.36
2.Ufl
2.101
3.02
3.08
J.I+
3.16
3.25
3.28
4.02
4.04
4.r5
4.25
4.40
4.60
4.61
3.
4.
Contents
5. Listed Company Considerations
Overvicrv
General l,iabilities
Scheme Involves a Company which has its Shares f'raded on the
Premium Segment of the Main Market
Scheme Involves a Company which has its Shares l-raded orher rhan on the
Premium Segment of the Main Market
Scheme Necessitates the Issue of New Shares
III CRE,DITOR SCHEMES
6. Major Typ"r of Creditor Schemes ina Corporate Restructuring Context
The Three Major'i,up.r of Corporate Creditor Schemes
Minorities Schemes
Secured I)ebt'fransfer Scheme
An Unsecured Debr tansfer Scheme or Tea (lorporarion Scheme
7. CompanyVoluntaryArrangements Compared with Schemes
Jurisdiction
{1166sdxss-Compromise or Arrangement
Procedure-Proposal
How is a CVAAchieved?
W'hat Approval is Needed?
'What is the Effect of a CVA on Creditors?
Does the Company Proposing the CVA have the Benefit of a Morarorium?
How Can a Creditor Challenge a CVA?
Disenfranch isement of Jun ior Cred itors and F.quity Holders
Valuation
Scheme or CIVA?
8. Creditor Schemes in Practice
What Can Schemes Achieve and'What are the ir l-imitations?
Meaning of 'Creditor'
(llass Issues
"Ihe Scheme Meeting
'Ihe Sancrion Hearing
English Tax Considerations for Schemes
IV N4EMBER SCHEMES
9. Types of Member Schemes
Overview of rhe Major'lyp., of Member Schemes
Takeovers
5.01
5.03
>.J+
).tt/
5.70
(r.01
6.2r
5.26
6.36
7.07
7.08
7.r0
/.t )
7.r8
7.22
7)4
7.28
7.3r
7.33
7.34
8.01
8.50
8.76
8.79
8.95
9.01
9.0ri
(rrt ..:
-lirp.
-lirp.
'lirp.
Rctr:::
l)c n:.
Rcm. .
\/ari.r:.
ll. Pracricc
Indic.r:. .
Respr.:
L)rafri::.
12. Practicc
Overr l. .,.
I)ocunr,:
-l'imst.i:-..
'fhe Sci:.:
Index
vlll
ffi
i.01
5.03
>'J4
).o/
5.70
Contents
Group Reorganisations
Topco Schemes-General
-fopco Schemes-Redom iciliation
Tbpco Schemes-lncreasing Distributable Reserves
Return of Capitalto Shareholders
Demergers
Removal of M inority Shareholders
Variation of Cllass Rights
10. Takeovers by Scheme of Arrangement
Comparison with Contracf ual Takeover Offers-Prevalence
Advantages and Disadvantages of a Member Scheme as Opposed to a
Contractual f akeover Offer
Changing from a ContractualTakeover Offer to a Scheme
ofArrangement
Hostile Offers
Competitivc Situations
Cancellation and'Iransfer Schemes
Determination of C,lasses
Application of the'l-akeover Code
Tax Issues
Employee Share Schemes
Overseas Shareholders
V PRACTICE AND PROCEDURE
11. Practice and Procedure: Creditor Schemes
Indicative Key Documents l-ist and Timeline: Creditor Scheme in
Respect of Credit Documents
Drafting Tips for Crediror Scheme: Scheme Claims under Credir Documents
12. Practice and Procedure: Member Schemes
Overview
Documentation
Timetable
'fhe Scheme
Index
9.r3
c).46
9.83
9.92
9,1r4
L).123
9,r53
9.163
10.01
10.05
10.55
r0.57
10.67
10.82
10.90
r0.93
10.116
TO,T34
10.159
11.01
tl.02
i2.01
t2.02
t2.14
12.18
307